Off-grid renewables

Off-grid projects are defined as those requiring a power supply above 10 kW and that are not connected to one of Australia's large-scale electricity grids: the National Electricity Market, the South West Interconnected System or the North West Interconnected System.

Most off-grid power supplies currently use diesel to generate electricity. But with diesel fuel prices forecast to continue rising, many off-grid projects are beginning to look to renewables as an alternative power supply.

In Australia, solar power and wind power are the most popular forms of off-grid renewables because they can be installed virtually anywhere. Solar power is the preferred choice for northern parts of the country while wind power is more popular in the southern states. Both technologies can be supported by energy storage systems such as batteries.

Two groundbreaking off-grid renewable systems will be constructed at major mining sites over the next few years. Rio Tinto's Weipa bauxite mine is set to get a 6.7 MW solar PV and storage system, while Coober Pedy will receive an 8.9 MW solar, wind and diesel hybrid plant thanks to Energy Developments Limited. Both projects were created with the support of ARENA.

The diesel currently used for remote power generation is usually subsidised. As the price of diesel continues to increase, the cost of these subsidies will also rise. Meanwhile, renewable energy solutions are getting cheaper every year and already make economic sense for many off-grid sites.

It is only a matter of time before renewable energy is the preferred source of power in remote areas of Australia.